Lowe’s Companies Stock Fair Value – Lowe’s Companies Earns $3.06 GAAP EPS, Misses Revenue Expectations by $390M
November 27, 2023
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It is the second-largest hardware chain in the world after The Home Depot and operates in the United States, Canada, and Mexico. The company reported a GAAP earnings per share of $3.06, which exceeded the estimate of $3.02 by $0.04. Revenue totaled $20.47 billion, however falling short of the estimated figure of $20.86 billion by $390 million.
The decline in revenue was also attributed to a decrease in customer traffic and a shift to lower margin categories due to consumer spending patterns. Going forward, Lowe’s ($NYSE:LOW) will need to continue adapting to the changing economic landscape brought on by the pandemic and maintain its commitment to providing value to customers.
Earnings
The recent earnings report for Lowe’s Companies for FY2024 Q2 ending July 31 2021 showed mixed results. Total revenue reached 27.57B USD, a 0.3% increase from the previous year. Net income also saw a 1.0% increase to 3.02B USD.
However, this was not enough to meet expectations, with total revenue falling short by 390M USD. Despite missing revenue expectations, their overall financial performance has been strong.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lowe’s Companies. More…
| Total Revenues | Net Income | Net Margin |
| 90.22k | 7.64k | 8.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lowe’s Companies. More…
| Operations | Investing | Financing |
| 7.48k | -1.5k | -7.98k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lowe’s Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 42.52k | 57.67k | -26.25 |
Key Ratios Snapshot
Some of the financial key ratios for Lowe’s Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.9% | 8.4% | 12.8% |
| FCF Margin | ROE | ROA |
| 6.0% | -48.5% | 17.0% |
Stock Price
On Tuesday, Lowe’s Companies, Inc. reported its financial results for the fourth quarter of 2021, and the numbers missed analyst expectations. In response, the company’s stock opened at $197.5 and closed at $198.1, 3.1% lower than the prior day’s closing price of $204.4. They also announced that they were on track to meet their financial commitments for 2021. Live Quote…
Analysis – Lowe’s Companies Stock Fair Value
At GoodWhale, we analyze the fundamentals of LOWE’S COMPANIES and have calculated its fair value to be around $268.2. Our proprietary Valuation Line is used for this calculation and takes into account different factors such as earnings, dividends, and future growth prospects. Currently, its stock is trading at $198.1, which is 26.1% lower than the fair value, suggesting that it is currently undervalued. Therefore, investors might consider taking a closer look at LOWE’S COMPANIES and possibly adding it to their portfolio. More…
Peers
Headquartered in Mooresville, North Carolina, the company employs over 290,000 people. Lowe’s is the second-largest home improvement retailer in the United States, after The Home Depot. The company competes with The Home Depot, Bed Bath & Beyond, Kohnan Shoji Co Ltd, and other home improvement retailers.
– The Home Depot Inc ($NYSE:HD)
The Home Depot Inc is a home improvement retailer that operates in the United States, Canada, and Mexico. It was founded in 1978 and is headquartered in Atlanta, Georgia. The company has a market capitalization of $282.03 billion as of 2022 and a return on equity of -2020.81%. Home Depot operates over 2,200 stores across the United States, Canada, and Mexico. The company offers a wide variety of home improvement products and services, including electrical, plumbing, lawn and garden, tools, and more.
– Bed Bath & Beyond Inc ($NASDAQ:BBBY)
Bath & Beyond Inc is a home goods retailer that operates in the United States and Canada. As of 2022, the company had a market capitalization of 401.26 million and a return on equity of 146.77%. The company sells a variety of home goods, including bedding, bath products, kitchen items, and home decor. It also operates a website and mobile app.
– Kohnan Shoji Co Ltd ($TSE:7516)
Kohnan Shoji Co Ltd is a Japanese company that manufactures and sells construction materials, tools, and hardware. It has a market cap of 94.2B as of 2022 and a return on equity of 9.73%. The company has a strong presence in the Japanese market and is one of the leading suppliers of construction materials in the country. It has a wide range of products that are used in both residential and commercial construction projects.
Summary
Lowe’s Companies is an American retail company specializing in home improvement products. The company recently released their GAAP earnings per share (EPS) of $3.06 which beat analyst estimates by $0.04. Revenue however, at $20.47B, missed estimates by $390M. On the same day of the earnings release, the stock price moved down.
This suggests investor sentiment may have been negatively impacted by the earnings miss despite the EPS beat, indicating that investors may be concerned about Lowe’s Companies’ financial performance. It is recommended for investors to conduct further research into the company before investing, to ensure they are well informed and comfortable with their decision.
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